Open AccessInvestment Banking Services: Ownership Structures, Financial Advisory and Corporate Governance Models
Author(s) -
Renato Giovannini,
Vincenzo Capizzi,
Gian Marco Chiesi
Publication year - 2010
Publication title -
international journal of business administration
Language(s) - English
Resource type - Journals
eISSN - 1923-4015
pISSN - 1923-4007
DOI - 10.5430/ijba.v1n1p49
Subject(s) - corporate governance , proxy (statistics) , business , premise , investment (military) , finance , sample (material) , financial services , linkage (software) , retail banking , investment banking , financial system , industrial organization , accounting , linguistics , philosophy , chemistry , biochemistry , chromatography , machine learning , politics , computer science , political science , law , gene
This study is based on the premise that mostly large enterprises require investment banking services, due to their complexity and the difficult scenarios in which they operate. Accordingly, we empirically investigate the hypothesis that both the type of ownership structures and the quality of governance are correlated with the demand for specific investment banking services. The analysis is developed by using a proxy for the propensity of enterprises to demand these services, making reference to an extended definition of investment banking activity. The empirical analysis performed on a sample of 150 enterprises showed that the investment banking propensity indicator is significantly correlated with ownership and governance variables. Next, we verify whether companies characterised by greater probability of access to investment banking services show better income performance. However, no conclusive and univocal conclusions can be drawn yet with regard to the linkage between investment banking propensity and performance